Gurugram Real Estate News: Over the last five years, Gurgaon’s residential areas in Wazirabad tehsil like Aralias have seen a 350% hike in circle rate.
Over the last 15 months, real estate company DLF has sold out three residential projects in Gurgaon for Rs 20,000 crore. Each unit was sold in the range of Rs 6 crore to Rs 8 crore, within three to seven days of the pre-launch of the projects. Next in its sights is a super-luxury project, which will be formally launched next year, with a flat going for Rs 70 crore.
The reason: Property prices in Gurgaon have seen a tremendous rise since the Covid-19 pandemic. Aided by various infrastructure projects, like the Dwarka expressway and the expansion of the Metro network, realty firms are witnessing a spike in the sale of properties.
Over the last five years, Gurgaon’s residential areas in Wazirabad tehsil like Aralias have seen a 350% hike in circle rate.
Affordable residential areas such as DLF 1 and Sushant Lok 1 have seen an increase of 46% in circle rate – from Rs 65,000 per sq yard in 2018-19 to Rs 95,000 per sq yard in 2023-24. Licensed colonies on Sohna Road, along with projects like Malibu Towne and Vipul World, saw a circle rate of Rs 65,000 per sq yard in 2023-24 — an increase of 23% since 2019-20, when it was Rs 50,000.
While the circle rate doesn’t impact the real estate market, especially the secondary market where properties are reintroduced for sub-sale or renting, the metric shows how the minimum prices have been increasing.
The realtors’ demand for better circle rates is clear from the fact that there has not been an increase over the last two years in the rates at extravagant neighbourhoods such as those on the Golf Course Road.
Sudeep Bhatt, Director (Strategy) at Whiteland Corporation, said Gurgaon has seen significant appreciation in property rates post-pandemic, spurred by “lifestyle changes and a growing preference for premium living spaces”.
“Semi-posh localities, such as Dwarka Expressway and SPR (Southern Peripheral Road), are also experiencing an uptick in interest, while other emerging sectors, such as New Gurgaon, are witnessing a gradual rise in prices,” he added.
Bhatt further said for developers, the hike in circle rates could mean an adjustment in project pricing, but it also reaffirms the region’s growth potential.
This is supported by a survey conducted by Savills, a British realty firm, in the first-half of the year. “In the secondary market, the Dwarka Expressway micro market stood out as the top performer with completed properties, showing a 44% year-on-year (YOY) increase in the average capital values, followed by the New Gurugram micro market with a 39% increase on a YOY basis,” it said in a report.
The primary market involves the first sale of a property, such as a new launch or ongoing project. In the secondary market, housing or commercial units are reintroduced to the market for rent or sub-sale.
The report said that in the primary market, the situation is reversed. “The New Gurugram micro market leads with a 53% YOY increase in the average capital values of under-construction properties, while Dwarka Expressway holds the second position with a 34% YOY increase. Notably, the New Gurugram micro market has rapidly emerged as a prime destination, attracting both investors and end-users. Its proximity to the newly built Dwarka Expressway ensures seamless connectivity to other parts of the region. This, combined with developing infrastructure, growing interest from multinational corporations, and the development of office and retail assets, has positioned it as the next hotspot in Gurugram,” the report added.
Especially in residential areas, the circle rates have seen 40% to 80% hike in the current year.
Saurab Saharan, Group Managing Director of HCBS Developments, said even without a steep hike in circle rate, they don’t foresee any adverse impact on the sector, as demand remains strong and investor confidence is high.
“Gurgaon’s property market has seen a robust rise in values since the pandemic, with market rates significantly outpacing current circle rates. In 2023, the district administration raised circle rates in Haryana by up to 30%, following a similar revision in early 2022. However, these rates were kept unchanged during the pandemic to support the sector. Now, with property prices consistently climbing, the anticipated hike in circle rates feels overdue and necessary to align valuations with real market conditions,” he added.
